Same Day Funding to Fulfill Large Orders
The clothing and apparel industry moves fast. Is your cash flow up to the challenge? If unpaid invoices are holding your fashion business back, invoice factoring can help.
How Can Clothing and Textile Factoring Help?
Your margins may be tight, but your cash flow doesn’t have to be. Clothing and textile factoring works to eliminate the gaps in your cash flow. Rather than wait 40, 60+ days for customers to pay, a factoring company purchases your invoices and issues an instant advance. This means no more waiting and stressing out over slow-payers.
Factoring invoices generates working capital within one day. This allows you to plan for employer deduction remittance, payroll and purchase supplies, which allows you to stay ahead of the competition while better planning your daily and future operations.
How Does Factoring Textile Invoices Work?
Factoring is a way for a business to increase their liquidity without going into debt. Clothing and textile companies sell their accounts receivable to a factor who accesses the ability of the account debtor to pay the invoice. If the debtor has a good credit rating, the factor will pay the business a percentage of the value of the invoice owed. This could be 85 percent within 24 hours.
When the customer pays the invoice, the factoring company will give you the rest of the value of the invoice minus the factoring fee. There is a non-recourse factoring option that will pay the advance percentage as well as the reserve release, even if the customer does not pay their bill. This is why the debtor’s credit rating is important.
Factor Finders offers an account management system that will check their client’s status 24/7 and send monthly statements. Clothing and textile factoring offers the opportunity for designers to focus on the creative side of their business and have the cash-flow they need without worrying about the back office.
Accounts Receivable Factoring is Flexible and Debt Free
Accounts receivable factoring has proven to be the best way to get quick cash without going into debt. Any company that offers goods or services on credit is eligible for factoring. You can select whichinvoices to factor and keep complete control of this line of credit. You will not need a credit check or need to wait for 30 to 90 days to receive the cash as with a lending institution. If you own a clothing and textile company, you should call Factor Finders today to increase profits and take your business to the next level.